Outlook for Korea's 13 Flagship Industries in the Second Half of 2025

Sungjin Kim
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Sungjin Kim: Korea Institute for Industrial Economics and Trade

No 18, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: In the second half of 2025 (H2 2025), the South Korean economy faces stiff headwinds, with macroeconomic factors worsening amid deepening policy uncertainties fueled by geopolitical developments. Among external factors, expanding investment in IT infrastructure across the world is the sole bright spot. Domestically, supply capacity is set to grow slightly, primarily in advanced industries and promising sectors, and investments in the digital transformation (DX) and green transformation (GX) are expected to continue apace. Korean firms are also poised to continue offshoring production to offset rising costs of producing and exporting goods at home, domestic firms’ overseas supply chains and production networks are going to keep evolving.

Overall, despite increased uncertainty stemming from tariffs and a more aggressively protectionist US trade stance, improved IT demand is expected to drive expanded production and exports of ICT devices, semiconductors, and displays. And while the bio-tech and shipbuilding industries could hit a rough patch H2, overall they will have grown in 2025.

Keywords: economic outlook; macroeconomic outlook; industrial outlook; industrial performance; production; aut (search for similar items in EconPapers)
JEL-codes: E60 E66 L52 (search for similar items in EconPapers)
Pages: 14
Date: 2025-05-31
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